Own business ontop of full-time employment,

BannanaMan

Hi All,

Looking to start my own business ontop of my full-time employment, I currently earn £33,000 so I understand that I have a threshold to earn around upto £6,825 to meet the £39,825 limit before 40% tax.

My question is the second income allowance would be profit? so I would take out any costs associated with office, travel, equipment etc before eating into this £6,825 earning?

Also, I have no idea on how much I will earn between now and April so when do I decalre this second interest, now or when I need to complete a tax return for the second income?

PlutoinCapricorn

One of the best aspects of being a sole trader is that you are indeed taxed on profit not income. Allowable expenses are deducted from the income to arrive at the profit.

You need to register as a sole trader as soon as you have a definite sale/assignment. You will get a tax form next April in which you declare your income.

https://www.businesslink.gov.uk is a very good place to start: you get free advice and information, also workshops.

And MSE people are available to help too, many of whom do freelance work on top of their full time jobs.